Hedge Fund Founder to Pay Nearly $300 Million

August 20, 2008

A federal court has ordered the former president and founder of a hedge fund to pay nearly $300 million for defrauding clients. The government had accused Paul Eustace of stealing $200 million from clients of Philadelphia Alternative Asset Management between 2001 and 2005, and creating false account statements, hiking management fees based on false profits and transferring clients' money to himself.